• HOSPA

Interpreting and Auditing Hotel Accounts in 2016 - Part 6

The Hotel Operating Statement Financial Accounting Issues

Interpreting and Auditing Hotel Accounts in 2016 - Part 6 The Hotel Operating Statement

Financial Accounting Issues


The USALI is principally a management accounting  structure.  This means that allocations of revenues and costs may not accord with relevant financial reporting standards or those necessary for taxation computations.

Here are some of the areas where issues can arise:


Total Revenue


The latest edition of the USALI introduced the distinction between Operating and Non-Operating revenues.  This was to separate out income not generated by the operator or manager, such as interest, retail space or other rentals not associated with the hotel operation.  The total of these forms a credit under the section of the Summary Operating Statement titles Non-Operating Income and Expenses.


The overall Total Revenue for a hotel may therefore require adding both of these lines together.